Profit margin

Profit margin is a measure of a company's profitability. It is the ratio of a company's net income to its revenue, expressed as a percentage. Profit margin is an important measure of a company's financial performance because it shows the amount of profit that the company is able to generate from its revenue. A higher profit margin indicates that the company is more efficient at generating profit, while a lower profit margin may indicate that the company is struggling to control its costs.